Replacement Cost<\/a>.<\/p>\nActual cash value policies depreciate the value of the material that was damaged before paying out on claims. This means that you get paid on today’s value of the materials, not the value when you purchased them.<\/p>\n
For example, suppose five years ago you bought a t-shirt for $20. What is that shirt worth today? Probably $2. If your house burns down and your t-shirt gets destroyed, an actual cash value policy covers the cost to replace the t-shirt at today’s value<\/strong>, or in this case only $2.<\/p>\nReplacement cost policies replace materials that have been damaged with brand new materials at today’s cost, regardless what the material was worth at the time it was destroyed.<\/p>\n
Using the same example of the t-shirt above, if your house burns down and your t-shirt gets destroyed, a replacement cost policy covers the cost to replace the shirt at today’s prices<\/strong> for a similar brand-new shirt, or in this case around $20.[\/vc_column_text][vc_custom_heading text=”HO8 Policies Typically Insure Unique Situations” font_container=”tag:h3|text_align:left|color:%23274e95″ use_theme_fonts=”yes”][vc_column_text]The HO8 home insurance policy is usually used to insure unique buildings and structures that otherwise wouldn’t qualify for a standard home insurance policy.<\/p>\nHistorical buildings, extremely old buildings, very unique are different architectures are all reasons why a home may be insured by the H08 insurance policy rather than a policy that offers a bit more coverage.[\/vc_column_text][vc_custom_heading text=”Home Policy Comparison – Baseline H08″ font_container=”tag:h3|text_align:left|color:%23274e95″ use_theme_fonts=”yes”][vc_column_text]Where does the HO8 policy stand compared to other policies? It’s at the bottom. Here is a quick look at other home insurance policies and how they stack up to the H08:<\/p>\n
Less Coverage: <\/strong>None; the HO8 is at the bottom<\/p>\nRoughly Equivalent Coverage:<\/strong> HOA<\/a><\/p>\nMore Coverage:<\/strong> HO1,<\/a> HOA+,<\/a> HO2,<\/a> HO3,<\/a> HO5,<\/a> HOB,<\/a> HOC<\/a>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column]\n\t\t\t<\/p>\n\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t
\nKeeping Up With Insurance is Time Consuming \n\t\t\t\t\t\t\t<\/rs-layer>Don't Worry, We've Got You Covered \n\t\t\t\t\t\t\t<\/rs-layer>Quote Concierge <\/i> \n\t\t\t\t\t\t\t<\/a>\t\t\t\t\t<\/rs-slide>\n\t\t\t\t\t<\/rs-slides>\n\t\t\t\t\t<\/rs-static-layers>\n\t\t\t\t<\/rs-module>\n\t\t\t\t